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BOSTON, March 7 /PRNewswire/ -- Copley Properties, Inc. (AMEX: COP), a real estate investment trust, today announced that Funds From Operations ("FFO") for the year ended December 31, 1995 was $4,584,029, or $1.28 per share. Excluding a $501,227 ($.14 per share) write-off of deferred financing costs taken in the first quarter, FFO for the year ended December 31, 1995 was $5,085,256, or $1.42 per share. FFO for the year ended December 31, 1994 was $6,741,295, or $1.88 per share. The 1994 results include an $864,549 or $.24 per share cash benefit from a lease termination and re-lease of the Company's Columbia Place property. Excluding the additional FFO from this transaction, FFO for the year ended December 31, 1994 was $5,876,746 or $1.64 per share.

Mary L. Lentz, Chief Operating Officer of Copley Properties stated, "The current year's financial results have continued to show improvement in property level operations. With the recent vacancy filled at the Company's Los Angeles Corporate Center, the portfolio stands at 99.6% leased. Our 1995 earnings were adversely affected by the increased professional fees related to the strategic assessment and pending merger. We believe the merger transaction is in the best interest of our shareholders."

Results from the Company's real estate operating activities generated income of $2,193,768 for 1995 as compared to income of $97,274 for 1994. The 1994 income includes a net charge from a lease termination at the Company's Columbia Place property in the amount of $1,770,471. Excluding the lease termination amounts, the Company's income generated from real estate operating activities in 1994 was $1,867,745. The 1995 results are an improvement of 17% compared to 1994 (exclusive of the lease termination amounts), primarily as a result of lower interest expense due to debt reductions at certain properties; income generated from acquisitions, increased rental revenue at certain properties due to higher occupancy rates; and a decrease in depreciation expense which resulted from the sale of the Company's Park North Business Center on June 30, 1995.

Total investment activity income for 1995 was $4,797,501 compared to $804,180 in 1994. During 1995 and 1994, the Company sold some of its investments, resulting in gains on sales of $2,564,478 and $626,931, respectively.

The Company's net income for 1995 was $2,389,300 compared with a net loss in 1994 of $536,945. The 1995 improvement is due to the items noted above, offset in part by an increase in portfolio expenses. The Company wrote-off deferred financing costs of $501,227 and incurred increased professional fees of $756,459.

During the second quarter of 1995, the Company retained Morgan Stanley & Co. Incorporated as its financial advisor to assess the strategic alternatives available to the Company in order to maximize shareholder value. In September 1995, based on various considerations, including advice form Morgan Stanley & Co. Incorporated, as well as the Company's legal advisors and management, the Board of Directors determined that it was in the best interest of the shareholders to gauge the market's interest in acquiring Copley Properties by soliciting the interest of third parties in merging with the Company or acquiring its stock or assets. In February 1996, the Company announced that it had entered into an Agreement and Plan of Merger under which Copley would be merged into EastGroup Properties (NYSE: EGP). The merger is subject to several conditions, including approval by the shareholders of both Copley and EastGroup.

Copley Properties, Inc. is an equity real estate investment trust engaged in the business of acquiring, developing, operating and owning industrial real estate. The Company currently owns and operates, directly or through tenancy-in-common arrangements, approximately 2.4 million square feet of rentable space, over 90% of which consists of industrial space. The portfolio is approximately 99.6% leased.
 Year Ended
 Dec. 31, Dec. 31,
 1995 1994
 Funds From Operations $4,584,029 $6,741,295
 Per Share $1.28 $1.88

Per Share (excluding the lease
 termination benefit) --- $1.64
 Per Share (excluding the deferred $1.42 ---

financing cost write-off)

Statement of Operations
 Income (Loss) from Investment $2,193,768 $1,867,745

 Less: Lease Termination Charges --- (1,770,471)
 Real Estate Operations 2,193,768 97,274
 Gains on Sales of Property 2,564,478 626,931
 Total Real Estate Activity 4,758,246 724,205
 Interest Income 39,255 79,975
 Total Investment Activity 4,797,501 804,180
 Portfolio Expenses (2,408,201) (1,341,125)
 Net Income (Loss) $2,389,300 ($536,945)
 Net Income (Loss) Per Share $0.67 ($0.15)
 Dividends Declared $1.06 $0.94

Balance Sheet Items
 Total Assets $81,517,257 $99,384,812
 Total Liabilities $42,541,311 $58,908,834
 Weighted Average Shares Outstanding 3,584,350 3,584,350

FFO is defined by the National Association of Real Estate Investment Trusts as "net income (loss), computed in accordance with generally accepted accounting principles, excluding gains (or losses) from debt restructuring and sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures."

/CONTACT: Mary L. Lentz of Copley Properties, 617-578-1295/


CO: Copley Properties Inc.; EastGroup Properties ST: Massachusetts IN: SU: ERN

LZ-SB -- NETH037 -- 1374 03/07/96 18:03 EST
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Publication:PR Newswire
Date:Mar 7, 1996

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